What Are Financial Technology Examples in Banking
Financial technology is known as FinTech.It is technology and innovation. The purpose of fintech is to compete with traditional financial methods in the delivery of financial services and it is a well-developing industry that uses technology to improve activities in finance.
Fintech is used to describe a new tech that seeks to improve and automate the delivery and use of financial services.
I will show some of the financial technology examples or Fintech examples in this article so that you get a clear picture.
It is used to help business owners, help companies and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms.
Fintech word is a combination of ‘financial technology.
Understanding Financial technology
“Financial technology” term can be applied to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping.
Because of the internet revolution and the mobile internet or smartphone revolution, financial technology has grown explosively.
Fintech is referred to as computer technology applied to the back office of banks as well as trading firms. It describes a broad variety of technological interventions in personal and commercial finance.
Financial technology is used for insurance, trading, banking services, automated investments, and risk management. Fintech is an all-encompassing term used to refer to technology in the financial services sector.
Latest Developments in FinTech
In 2008, during The Global Financial Crisis, transparency has become more important than ever and in which many people lost their trust in traditional banking systems, security and in the 1990s, FinTech started to flourish when e-commerce business models arose and the Internet and the following decade banking in most parts were completely digitalized.
It is providing access to banking profiles, payments, and transfer of money with automatically converted currencies.
Due to high expectations and regulations and on the customer’s side FinTech company’s main goal is to create services and implementations with long-term potential.
What is Data Security
Data security or Cybersecurity has become a major concern of federal regulators and financial institutions. It is an important addition to physical security.
For example, banks are concerned about both physical and electronic theft of money. Maintaining the confidentiality, security, and integrity of physical records and electronic data.
9 Financial Technology Examples in Banking
What are some of fintech’s traditional uses? And How is fintech being used in 2020?
1. Crowdfunding Platforms
Some companies such as Kickstarter, Patreon, GoFundMe, and others illustrate the range of fintech outside of the traditional banking system.
2. Mobile Payments
It seems like everyone with a smartphone uses the system of mobile payments. In 2019, according to Statista data, the global mobile payment market is on track to surpass $1 trillion. Some companies like Interac and Venmo allow customers to send and receive money through smartphones
3. Blockchain and Cryptocurrency
Cryptocurrency exchanges like Gemini connect users to buying or selling cryptocurrencies like bitcoin or litecoin and Coinbase. Cryptocurrency and blockchain are hallmark examples of fintech in action.
4. Insurance
Fintech has even disrupted the insurance industry. The term insuretech can be defined as the application of technology to the insurance model, which allows insurance services from car insurance to home insurance and data security
5. Stock-Trading Apps and Robo-Advising
It is an online investment management service that uses algorithms to optimally allocate assets and generate portfolios for customers and it has disrupted the asset management sector which provides algorithm-based asset recommendations and portfolio management. It also has increased lowered costs and efficiency.
6. Budgeting Apps
In 2019, One of the important uses is budgeting apps for consumers. That has grown exponentially in popularity over the years.
It can easily and efficiently process that keep track of their expenses and other budgeting tools and income. Fintech has revolutionized the way consumers think about their money.
Earlier consumers had to create their own navigate excel spreadsheets and budgets. It gathers checks and keeps track of their finances.
However, the fintech revolution prompted the development of financial services apps and consumers.
7. Regtech
Regtech is known as regulatory technology. It focuses on the automation of compliance processes for financial institutions and It offers fast and cost-effective management of large amounts of data including transaction records and compliance documents. Example: corporate tax returns.
8. Digital Banking
Digital banking is becoming more popular in the common mess people as it is easy to use.
The system is very solid and there is no option to bribe the related bank officer.
A good number of consumers have already managed money, paying loans, requesting, giving bills and purchasing various things via digital-first banks.
Every year the growth of digital banking is going up because of the simplicity and ease to navigate which gives additional growth. On the global stage, the annual compound growth will be 11.5 percent by 2026.
9. Artificial Intelligence (AI) and Machine Learning (ML):
AL and MI’s innovation of technology has completely changed the client’s service system.
In addition with the help of AI and MI, fintech companies have upscale to a different level.
Moreover, because AI and MI thrive on the value of the clients, company costs have been minimised and a massive level reduces fraud.
Certainly, when all the technologies are easily accessible and affordable then more companies will be interested to use this AI and MI in their Fintech company.
Which Technologies are used in FinTech?
The technologies are using in fintech are personal computers, laptops, Tab, and Mobile phones. To secure the beneficiary’s pay the following security is used.
They are such as biometric enrollment and authentication, SMS notification, Field Communication (NFC), face enrollment and recognition, one-time password (OTP), etc.
Final thought
FinTech enhances the relationship with customers such as small businesses, entrepreneurs, charities, and artists through the launch of Crowdfunding Platforms to receive support without raising money from conventional investorsfintech’s popularity and rapid growth. Because fintech mobile Payments changed the way how we used to manage our finances and tech-savvy customers like Millenials expect money transfer, lending, loan management and investing to be effortless, secure and scalable without even the visit of a bank or in presence of any person. So, I hope you have got an answer to your question what is Financial Technology examples
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